West Valley City Utah home sales went through a major transition in June. Home values continued to rise by 1.7% for the month of June and were 28% higher than they were in June 2006. In just the last 6 months West Valley home prices have increased by 15.6%. That is the biggest increase in the Salt Lake Metropolitan area. But, will the increases continue or will we begin to see some softening of prices? I think we will see a softening.
Month | Average Sold Price | Change from Prior Year | # of Homes sold | Change from Prior Year | Absorption Rate in Months |
1ST Qtr | $205,704 | +34.4% | 285 | +1.4% | NA |
April | $210,477 | +26.4% | 100 | -1.9% | 3.9 |
May | $215,472 | +21.8% | 145 | +5.8% | 2.8 |
June | $219,032 | +28.6% | 84 | -43.6% | 5.1 |
2ND Qtr | $214,111 | +24.8% | 339 | -12.9% | 4.1 |
The absorption rate, which is the leading indicator of real estate market direction, for West Valley City increased by 82% in June. In May we saw the absorption rate decline to 2.8 months and in June skyrocket to 5.1 months. The change took West Valley from a sellers market to a balanced market trending to a buyers market.
Why the big change? I believe the biggest factor is the tightening of credit. All the hype and media about lenders problems with 2nd mortgages, sub-prime credit, and 100% loans is beginning to affect buyers. Buyers that have no cash for closing costs and a down payment will no longer be able to buy. That will have a huge impact on most transactions in West Valley.
If you're interested in information on any particular zipcode or neighborhood just contact us at 801-582-5882 or at Ask The Broker.
Information for our real estate stats was taken from WFRMLS as of 7/13/2007 and is subject to change at the discretion of the web-master. Zip-codes included for West Valley City include: 84120 and 84128.
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